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Sony: We’re ahead of Xbox

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Sony: We’re ahead of Xbox

SCEE President Reeves says PS3 installed base is 300,000 ahead of rival in PAL region

Sony has moved to dispel Microsoft claims that Xbox is outselling the PS3 in Europe, revealing internal figures that say its console has sold 300,000 more units than Xbox 360 in PAL territories.

And the company doesn’t feel it has to follow Microsoft and further ignite consumer interest with a price cut of its own anytime soon.

SCEE president David Reeves told MCV that Sony will remain focused on the value offered by the PS3 and its extra functions and services – at its current £299 SRP.

“No we are not going to go down in price; neither are we going to go down in price on PS3 in spring time either. Absolutely not, whatever you might have heard to the contrary,” he said – referring to purported ‘leaks’ from a Sony meeting two weeks ago that claimed Sony had a price cut planned for March ‘09.

“Our strategy is very much value added.” Reeves added that Sony’s business model for the console isn’t designed around dropping the RRP every time a manufacturing cost saving has been found. And he was keen to point out that, according to Sony figures, the PS3 is already ahead of Microsoft’s rival.

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“I am confident that in PAL territories our installed base is 300,000 units ahead of Xbox 360,” said Reeves.

“When we came into the industry we started at zero. And we had to have a model that offered price elasticity. As soon as we got the manufacturing price down on PSOne we lowered the price. Same with PS2. But we’re not doing that on PS3 – that’s not the model, even if people are expecting it.

“We’re relying on the fact that the industry will keep growing and while we might have a comparatively smaller share of the market we will have higher sales. PS3 is tracking where PS2 was at the same point in its life. The value added strategy will continue for some years to come.”

Plus, at a time when Sony is first looking to put its Computer Entertainment division in the black after two years reporting losses, a big emphasis at SCE has been on returning to profitability.

However, Reeves hinted that once Sony has rebalanced the PlayStation business, retail can expect the firm to up the ante:
“We are a in a solid position, and are not lackadaisical,” he commented.

“Next year we are probably going to be a little bit more aggressive when we reach the break-even point.”

tit for tat PR war

posted by Jay Dec 04, 2008 at 3:55 pm
1
Jay

It seems each side is in favour of having the last word.
Sony has been ahead of MS in europe for a while now, I think everyone knows that although I was expecting a bigger gap than 300k.
They should really show who is selling more, as yes one side can claim to be selling more and the other to say they have sold more but its about is selling more on average as sony could see that 300k gap disappearing.

The admission of no price drop in early 2009 doesn't help things either for them.

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Re: tit for tat PR war

posted by JD Dec 04, 2008 at 4:42 pm
2
JD

What doesn't help is one says Europe and the other says PAL which are very similar but they don't include 100% of the same countries. I believe Australia is PAL and there are some European counties that aren't

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Re: Re: tit for tat PR war

posted by Jimothy Dec 04, 2008 at 5:42 pm
3

This is bit misleading, he says PAL, not Europe MCV, and as JD said, PAL represents Aussie land as well.

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X360 is finished in PAL and EU regions

posted by wasim Dec 04, 2008 at 8:39 pm
4
wasim

In PAL especially in Middle east no one buys x360

The only place where x360 is selling is UK. However that is because the x360 costs less than a PS2 there

In 2009 PS3 will give x360 the final deathblow

a ps3 costs almost thrice as much as an X360 in europe

Good job SONY

Kill the TRASH BOX 360

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PAl represents Arabian Peninsula where PS3 has 90% marketshare

posted by wasim Dec 04, 2008 at 8:40 pm
5
wasim

SONY overtook X360's LTD base in Australia with the Bravia deal

x360 is finished

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handbags at dawn

posted by mines bigger than yours Dec 04, 2008 at 9:35 pm
6
mines bigger than yours

Ok so it looks like both machines now have a good installed base although i feel PS3 has the legs to outrun Xbox 360.

are those figures the amount of consoles sold or manufactured?

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Re: Re: Re: tit for tat PR war

posted by Chris****** Dec 05, 2008 at 12:23 am
7
Chris******

I'm not certain what to think. VGchartz states that the 360 has sold 150K more than the PS3 as of the 29th of November. If this is true and the aforementioned is what Sony really thinks... Sigh... I really don't know what to think then!

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Re: Re: Re: tit for tat PR war

posted by Johnno Dec 05, 2008 at 6:11 am
8
Johnno

I believe Sony is no longer interested in coming in 2nd or 1st place. It seems they've adopted the same strategy as the handheld arena. They've long given up on the PSP ever beating the DS and instead are concentrating on profitability. They won't bother dropping their price below the competition or in response to the competition's price drop. As long as sales come in as expected or higher than their forecasts, it's good enough for them. If sales falter they will try a bundling strategy first. And failing that there will be a price drop so long as they still profit. Of course this will mean coming in last place and it seems they're accepting that and in order to keep themselves relevant are no longer really courting 3rd parties with paid exclusives and are putting more support and funding into their first party studios so there'll always be a reason to get a PS3.

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Re: Re: Re: tit for tat PR war

posted by getITstraight Dec 05, 2008 at 7:58 am
9
getITstraight

Tracking Sales by PAL regions is a lot easier. You know how many PAL machines have sold. However guessing at how much each country within Europe has sold is a lot harder. The 360 Tracks SHIPPED units so they count them when they head out the door, but that doesn't mean they will sell. The PS3 is more realistic by tracking actual SOLD units.
360 had a year and a half lead out the door in Europe, and the PS3 has already caught them. Remember, PS3 launched later in Europe than NA.

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Re: Re: Re: tit for tat PR war

posted by LeeC Dec 05, 2008 at 9:06 am
10

"Sony’s business model for the console isn’t designed around dropping the RRP every time a manufacturing cost saving has been found."

Too true, it's about cutting the production cost, giving the consumer a reduced content machine and then charging the same/more for it. I think this guy forgets that the PAL territories got shafted by Sony's cost cutting exercises, when they were forced to pay extra for a reduced spec machine. And how many times have we seen "here's a cheaper version... but we've taken out some USB ports, or a card reader that you can't add back in".

The classic for me was when they removed BC from the PS3 and then announced a new PS2, shortly after followed by the announcement that devs were stopping supporting the PS2. Talk about manipulate the market and then leave it hanging...

And let's face it, "Sony's figures", are these the same figures that they used to use to pass "shipped" off as sold? I remember them doing that with the PS2, claiming a massive figure and then someone discovered that a chunk of that figure was based on warehouses full of unsold PS2's.

Sony have also had the "crutch" of people buying the PS3 as "only" a Blu-Ray player. But of course, they'll never distinguish between the two when it comes to sales figures.

Now that BR Players are below the PS3's price, it won't be long before we see multi-region players that will prove far more appealing than a region-locked games console. Especially to those videophiles with a huge collection of imported movies on DVD.

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Re:tit for tat PR war

posted by games direct uk Dec 05, 2008 at 9:34 am
11
games direct uk

yea yea yea, heared this all before , as a indie shop ps3 sales are still very minor, day one release of call of duty world at war 50 units on 360 and 4 units on ps3, sont seem to have their head stuck somewhere ! lets be honest here the ps3 is a great machine, but do people really want to buy a games console or a media centre and more to the point with this so called credit crunch ( hmm ) will people want to pay £300 for a ps3 or £170 for a 360 and spend the rest on games, to me it seems a no brainer. as a front line store so to speak we have loads of preowned games to sell hard up people on the 360, but there is not much around for the ps3. ps3 maybe well be the best machine tech wise however the 360 is cheap , 360 games are cheap nad people havent got much cash kicking around so the 360 goning to win this war short term at least

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Re: Re:tit for tat PR war

posted by Ian Dec 05, 2008 at 10:05 am
12
Ian

@9 I agree lets get it right but you are wrong. SONY has always counted as SOLD a machine that leaves manufacturing. So even if it goes from SONY factory to SONY warehouse its' sold..on the basis that every machine will eventually hit retail. MS however counts as sold once they have sold into a distributor. MS are more accurate alwatys have been.

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Re: Re: Re:tit for tat PR war

posted by Jimothy Dec 05, 2008 at 11:11 am
13

@ wasim,

Your such a fanboy it's untrue. It's hilarious. Officially "the joker" of MCV. Well done.

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Re: Re: Re: Re:tit for tat PR war

posted by Limerick Dec 09, 2008 at 3:47 pm
14

I work for a disvion in Sony, i have a 360 and Wii and a pc for MMO's no PS3, i believe it to be totally overhyped system. Not going to blab about how great Sony its my job not my life

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Re: Re: Re: Re: Re:tit for tat PR war

posted by Ben@MCV Dec 09, 2008 at 4:01 pm
15

No you don't, Mr. Limerick. As a registered member of the site I can see that you in fact work for... well, I won't embarrass you further. But I will ban you.

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Re: Re: Re: Re: Re: Re:tit for tat PR war

posted by TimeUp Dec 10, 2008 at 12:59 pm
16
TimeUp

I dont think sony are being honest. Lets face it the 360 - love it or hate it, Is far cheaper then the PS3 and as we have this credit crunch happening at the moment, people will go for the cheaper option which would be the xbox. If im wrong and PS3 has sold slightly more then the xbox, that lead wont last. Im sure at the beginning of '09' the figures will show this.

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